Home Buying in Chula Vista>Question Details

Erwin, Home Buyer in Chula Vista, CA

First time buyer.

Asked by Erwin, Chula Vista, CA Thu Aug 20, 2009

My fiance and I are interested in buying a home together. I am a first time home buyer, and she already has a condo. With the market the way it is right now, her condo is worth a lot less than she paid for it, and we can't sell it. We would like to rent it out, and get into a house, but since she already has a mortgage, she can't be on the loan with me. With only myself on the loan, I can't qualify for more than $200,000. Any suggestions?

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Erwin: To be able to rent your house out and get another loan, you must have equity in the property. So your fiance cannot be your co-borrower UNLESS she can qualify for the new property and NOT count the rental income from the condo.

You could ask a family member to go on the loan with you as a non occupant co-borrower (allowed on an FHA loan). You could ask a family member to gift you enough cash to drop your payment enough to qualify.

You could simply buy what you could qualify for now (although I doubt there are houses that cheap, but maybe I am wrong)

The reason lenders will not allow you to rent out the departing house is because too many people want to "dump" their underwater house, after they buy something else. Lenders see this as a way to stop foreclosures.
1 vote Thank Flag Link Fri Aug 21, 2009
Hello Erwin,

Did a lender tell you she cannot be on the loan? If so, talk to other leanders, and make sure they are direct lenders and not a mortgage broker.

If your fiance rents her condo first, that may change the picture. This is NOT a question for agents, but rather for your lender. If you need referrals for a lender, ask your agent or your family, friends and colleagues.

Best to you,

Mark and Kari Shea
San Diego Real Estate Experts
Foreclosure, Short Sale & Investment Specialists,
Development Opportunities & Traditional Real Estate
1 vote Thank Flag Link Fri Aug 21, 2009
I would like to know a little more about your situation, such as income and credit score etc. But, your best bet is to buy a home together. That means your fiance should try to get rid of her condo in a short sale. With it being undervalued, it will only hurt her credit. This is a long term solution that won't get you a home in the near future, but will position you for one down the road. Alternatively, you could move into her condo and wait for the market to improve, you have more income and some savings for a down payment.

Ed Peckham
Peckham Realty
3914 Murphy Canyon Road, A218
San Diego, CA
0 votes Thank Flag Link Thu Aug 20, 2009
Buy a house for less than $200,000. They are out there....Go to http://joanwilson.prudentialcal.com and take a look.

Best of luck,

Joan Wilson Prudential
0 votes Thank Flag Link Thu Aug 20, 2009

Go to http http://:www.QuestStarRealty.com and click on property alerts. We can get you started with a real-time search to see what is available for you in the 200k range.

In addition, call Mary Anne at 858.688.9026 and she can get you a loan approval.

Happy house hunting!
0 votes Thank Flag Link Thu Aug 20, 2009
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